The Use of Financial Ratios in Predicting Changes in Profit at The Savings and Loans Cooperative in Denpasar City

ABSTRACT:The financial ratio component is generally different in large companies with savings and loancooperatives (KSP). In general, the KSP was unable to do so, due to limited resources. This studyexamines the usefulness of 49 financial ratios from 105 sample KSP in Denpasar City. The data wereanalyzed by using the stepwise model of multiple regression. The research objective explains the use offinancial ratios as predictors of changes in earnings (SHU) for the next one, two and three years. Theresults show that partially and simultaneously; The significant and positive ratio predicting changes inSHU one year ahead is the OPPBT and CANS ratio, the significant and negative ratio predicting changesin SHU in the next two years is the WCFA ratio, and the significant and positive ra tio predicting changesin SHU in the next three years is the TLCA ratio. and CATL. The results of this study are consistent withprevious findings, although individually they still appear to be inconsistent. The differentiator that can befound is that the financial ratios are also significant in predicting changes in the SHU KSP for the next one,two, and three years.

KEYWORDS:credit union, changes in profit, financial ratios.